Albemarle stock has 30% upside, according to one Wall Street analyst.

While estimating how high the manufacturer is. albemarle‘S (alb 2.25%) Loop Capital analyst Christopher Kapsch still sees plenty of room for upside in the stock. Last week, Kapsch lowered his previous price target of $168 and said he sees Albemarle’s stock price headed to $162 and that he maintains a buy rating on the lithium company’s stock.

Based on Monday afternoon’s share price of $124.18, Kapsch’s price target suggests an upside of about 30% over the next 12 months.

Investors’ enthusiasm has cooled.

According to Thefly.com, Kapasch acknowledges that market sentiment toward Albemarle is not the best right now for a few reasons. In addition to concerns about falling lithium prices, investors are moving away from Albemarle stock after the company raised nearly $2 billion in net proceeds from a new depositary stock offering.

These days, investors don’t seem to be charging any money for Albemarle stock. While Albemarle’s stock price has fallen more than 15% since the beginning of 2024, S&P 500 It rose by more than 7%. The issues raised by Kapsch appear to be deterring investors from clicking the buy button. Other factors, such as concerns about a slowdown in demand for electric vehicles (EVs), are also hitting stock prices.

While the concerns are understandable, the issue does not suggest that Albemarle’s best days are behind it. The company has an impressive operating history dating back to 1887. We certainly faced headwinds during that period, and we overcame them, increasing shareholder value over the long term. For example, over the past 20 years, Albemarle’s total return has exceeded 1,000%, exceeding the S&P 500’s total return of 576% over the same period.

Whether Albemarle exactly hits the $162 price target set by Kapsch is not important to investors with long-term investment horizons. Investors should also take analysts’ price targets with some caution. But with the stock trading at 9 times earnings, today seems like a good time for investors to top up their portfolios with Albemarle stock.